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Business Finance

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Term
Definition
Money   item that serves as a method of payment  
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Finance   activities involved with saving, investing, and using money by individuals, businesses and governments  
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Inflation   rise in general price levels  
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Security   investment instrument issued by corporation or government representing ownership in it  
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Stock   security representing ownership in a corporation or government  
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Bond   debt, money borrowed by company/government  
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Liquidity   speed/ease which investments can be converted to cash  
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Personal Financial Plan   process of managing money to achieve personal economic satisfaction  
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Financial Plan   formal report with summary of current financial situation and plan for future financial activities  
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Personal Financial Goal   desired goals for financial planning  
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Opportunity Cost   what is given up in a financial choice  
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Deposit Institutions/Depository Institution   accept deposits from people/businesses to use in the future  
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Non-Depository Institutions   insurance, investment, consumer finance, and mortgage companies, check-cashing outlets and pawnshops  
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Source of Funds   inflow of cash that can be used for paying various expenses  
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Use of Funds   outflow of money by companies  
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Tax Revenue   government income, tax collection  
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Income Taxes   tax on income of individual  
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Property Tax   tax on value of land/building  
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Sales Tax   a state/local tax on good/products by the seller  
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Manicipal Bond   a bond issued by a state/local government  
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